According to the Ministry of Agriculture, China’s planted rapeseed acreage and production are estimated to be 6.867 million ha. and 11.85 million MT this year, 12.2% and 3.8% more than last year respectively.
The expansion of rapeseed acreage was accredited to the government’s subsidy. In Sept., 2007, the central government announced that it would provide fine seed subsidy to rapeseed growers at a standard of RMB150/ha. The policy produced a satisfying effect.
Rapeseed yield dropped 7.4% in southern provinces to a level of 1,726 kg/ha. as a result of spring snowstorms. But farmers worked hard to minimize the impact of adverse weather.
Rapeseed production cost, such as fertilizer, diesel oil, etc., has kept growing since last year, causing farmers to hold rapeseeds from sales for higher prices. The current rapeseed procurement price is RMB4.2 ~ 4.4/kg, up 43% on the year-on-year basis. Procurement price is predicted to hit RMB5 ~ 5.2/kg in the late stage of procurement.
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